Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Metals & Mining - Iron & Steel industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Metals & Mining - Iron & Steel Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

6 Undervalued Metals & Mining - Iron & Steel Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Metals & Mining - Iron & Steel industry for Thursday, August 22, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Metals & Mining - Iron & Steel industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Ampco-Pittsburgh Corp’s Value Grade

Value Grade:

Ampco-Pittsburgh Corporation manufactures and sells highly engineered, high-performance specialty metal products and customized equipment utilized by industry throughout the world. The Company's segments include Forged and Cast Engineered Products (FCEP) and the Air and Liquid Processing (ALP). The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products. Forged hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. Cast rolls are produced in a variety of iron and steel qualities. The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid Systems Corporation, a subsidiary of the Company. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including original equipment manufacturer/commercial, nuclear power generation and industrial manufacturing.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ampco-Pittsburgh Corp has a Value Score of 89, which is considered to be undervalued.

When you look at Ampco-Pittsburgh Corp’s price-to-sales ratio at 0.09 compared to the industry median at 0.55, this company has a lower price relative to revenue compared to its peers. This could make Ampco-Pittsburgh Corp’s stock more attractive for value investors.

Now, let’s assess Ampco-Pittsburgh Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, when compared to the industry median of 6.6, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Ampco-Pittsburgh Corp’s shareholder yield is lower than its industry median ratio of 2.65%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Ampco-Pittsburgh Corp’s price-to-book ratio is lower than its industry median ratio of 1.04. This could make Ampco-Pittsburgh Corp more attractive to investors looking for a new addition to their portfolio.

Radius Recycling Inc’s Value Grade

Value Grade:

Radius Recycling, Inc., formerly Schnitzer Steel Industries, Inc., is a manufacturer and exporter of recycled metal products. The Company also operates a third-party recycling (3PR) service, which includes materials management, reverse logistics, railcar dismantling, and vehicle recycling services. The Company operates scrap recycling facilities in 25 states, western Canada, and Puerto Rico. It has 54 metals recycling facilities, including seven shredding operations. The Company’s integrated operating platform also includes 50 stores which sell serviceable used auto parts from salvaged vehicles and receive over four million annual retail visits. Its steel manufacturing operations produce finished steel products, including rebar, wire rod, and other specialty products. The Company has seven deep water export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company's subsidiaries include Auto Parts Group Southwest, LLC, Edman Corp., and others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Radius Recycling Inc has a Value Score of 86, which is considered to be undervalued.

Radius Recycling Inc’s price-to-book ratio is higher than its peers. This could make Radius Recycling Inc less attractive for value investors when compared to the industry median at 1.04.

You can read more about Radius Recycling Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Reliance Inc’s Value Grade

Value Grade:

Reliance, Inc. is a diversified metal solutions provider and has a metals service center company in North America. The Company provides value-added metals processing services and distributes a full line of over 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, specialty carbon and alloy steel plate and round bar and specialty steel products. It serves various industries, such as general manufacturing, non-residential construction (including infrastructure), transportation (rail, truck trailer and shipbuilding), aerospace (commercial, military, defense, and space, and heavy industry, energy (oil and natural gas). It also services the auto industry, primarily through its toll processing operation. It has a network of approximately 315 locations in 40 states and in 12 foreign countries, including Belgium, Canada, China, France, India, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates and the United Kingdom.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Reliance Inc has a Value Score of 61, which is considered to be undervalued.

Reliance Inc’s price-earnings ratio is 14.5 compared to the industry median at 11.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Reliance Inc less attractive for value investors.

Reliance Inc’s price-to-book ratio is lower than its peers. This could make Reliance Inc more attractive for value investors when compared to the industry median at 1.04.

You can read more about Reliance Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Ryerson Holding Corp’s Value Grade

Value Grade:

Ryerson Holding Corporation is a value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China. The Company carries a full line of carbon steel, stainless steel, alloy steels, and aluminum, and a limited line of nickel and red metals. These materials are stocked in a number of shapes, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural, and tubing. The Company also provide a variety of processing services to meet its customer’ s needs. It also conducts metal processing and distribution operations in China. It has approximately 110 facilities in North America and four facilities in China. The Company offers various value-added processing and fabrication services, such as bending, beveling, blanking, blasting, burning, cutting-to length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, polishing, punching, rolling, and sawing.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ryerson Holding Corp has a Value Score of 92, which is considered to be undervalued.

Ryerson Holding Corp’s price-earnings ratio is 10.8 compared to the industry median at 11.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Ryerson Holding Corp more attractive for value investors.

Ryerson Holding Corp’s price-to-book ratio is higher than its peers. This could make Ryerson Holding Corp less attractive for value investors when compared to the industry median at 1.04.

You can read more about Ryerson Holding Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Sims Ltd (ADR)’s Value Grade

Value Grade:

Sims Limited is engaged in metal recycling and provides circular solutions for technology. The principal activities of the Company include buying, processing, and selling of ferrous and non-ferrous recycled metals, and supporting businesses and data centers in managing end-of-life physical information technology (IT) assets through reuse, redeployment, and recycling. This includes IT asset disposition (ITAD) and e-waste recycling solutions. The Company's North America Metal (NAM), Australia and New Zealand Metal (ANZ) and UK Metal (UK) segments are engaged in ferrous and non-ferrous secondary recycling functions. Its Global Trading segment coordinates sales of ferrous bulk cargo shipments, non-ferrous sales into primarily China and Southeast Asia and brokerage sales on behalf of third and related parties. Its SA Recycling (SAR) segment is engaged in an investment in the SA Recycling joint venture. Its Sims Lifecycle Services (SLS) segment provides electronic recycling solutions.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sims Ltd (ADR) has a Value Score of 98, which is considered to be undervalued.

Sims Ltd (ADR)’s price-to-book ratio is higher than its peers. This could make Sims Ltd (ADR) less attractive for value investors when compared to the industry median at 1.04.

You can read more about Sims Ltd (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Worthington Steel Inc’s Value Grade

Value Grade:

Worthington Steel, Inc. is a metals processor that partners with customers to deliver highly technical and customized solutions. The Company specializes in carbon flat-roll steel processing, electrical steel laminations and tailor welded solutions. The Company's carbon flat-rolled steel processing includes a variety of value-added processes based on customer requirements including pickling, specialty re-rolling, hot dip galvanizing, blanking, slitting and cutting-to-length. Its electrical steel laminations include manufacturing of precision magnetic steel laminations for the automotive, industrial motor, generator and transformer industries. Its tailor welded products include tailor welded blanks and aluminum tailor welded blanks. It operates around 29 manufacturing facilities located in the United States, Canada, China, India, Germany, and Mexico. It serves various end markets, including automotive, construction, machinery and equipment, agriculture, and heavy trucks, among others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Worthington Steel Inc has a Value Score of 77, which is considered to be undervalued.

Worthington Steel Inc’s price-earnings ratio is 11.0 compared to the industry median at 11.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Worthington Steel Inc fairly attractive for value investors.

Worthington Steel Inc’s price-to-book ratio is lower than its peers. This could make Worthington Steel Inc more attractive for value investors when compared to the industry median at 1.04.

You can read more about Worthington Steel Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Metals & Mining - Iron & Steel Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Metals & Mining - Iron & Steel stocks as well as other industrys.

Choosing Which of the 6 Best Metals & Mining - Iron & Steel Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Ampco-Pittsburgh Corp stock has a Value Grade of A.
• Radius Recycling Inc stock has a Value Grade of A.
• Reliance Inc stock has a Value Grade of B.
• Ryerson Holding Corp stock has a Value Grade of A.
• Sims Ltd (ADR) stock has a Value Grade of A.
• Worthington Steel Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Metals & Mining - Iron & Steel industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Metals & Mining - Iron & Steel Stocks

Want to learn more about Metals & Mining - Iron & Steel stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Metals & Mining - Iron & Steel Stocks for Thursday, August 22
• 3 Undervalued Metals & Mining - Iron & Steel Stocks for Wednesday, August 21
• Why Radius Recycling Inc’s (RDUS) Stock Is Up 4.02%
• Why Ramaco Resources Inc’s (METC) Stock Is Up 4.03%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.